Buying a car is not always the most pleasant experience to go
through. Haggling, paperwork, running numbers and signing on the dotted
line can take hours. Understanding what your interest rate is, how much
your payment will cost you every month, and knowing when you can
celebrate your "final payoff" are sometimes unclear as we drive off the
lot in our new set of wheels.
Finding a dealer you can trust
should be a priority when looking for a new car. Auto dealers can
mislead you; no matter how big, fancy, nice or friendly car lots and car
sale people can be. Educating yourself before you start the process can
save you a great deal of time, money and stress and, in the long run,
will have you feeling better about your purchase.
What to look for when making sure you are not being "taken to the bank" with your auto mobile purchase:
In
an effort to boost their profits, car dealers may tell you your
financing has fallen through. You may get called to come back to the
dealership where the dealer then tries to renegotiate the interest rate
on your loan. While trying to sell you extra services, accessories
and/or warranties, they neglect to tell you that your payment has gone
up.
Dealers will also, in some cases, let you drive off the lot
with your shiny new car or truck without finalizing your loan paperwork.
While they promise to work it out after you leave, they then call you a
few days later only to inform you that your loan terms have changed.
You then find out that your monthly payments are more than you can
afford and now you are back in their office renegotiating your loan
terms.
*What to do? Get financing on your own before you go into
the dealership. Compare the rate you have been given to what the dealer
is offering. Also, focus on the total amount you want to spend on the
car versus your monthly car payment. You could end up paying more for
the car in an effort to keep your payment at a certain amount.
This
could be a case of credit or identity theft. If the dealer tells you
that they need to run your credit report even though you are not
financing with them, be weary. You are not obligated to let them run
your credit, even if they say its part of the Patriot Act which was
passed in the effort to combat terrorism. Cases of dealers running a
person's credit multiple times for the same loan have been found.
*What
to do? If you are already financed through your bank or credit union,
tell them that you don't have to, and will not, give them permission to
run your credit. As a precaution, check your credit periodically after
you buy your car to ensure there are no unknown loans taken out.
This
has got to be the most common form of deception in the auto lending
industry. Every week you get those car sales ads offering what seems to
be "too good to be true" prices. That's because often times they are.
Low prices, no down payment and 0% interest rates are advertised but
only in the fine print will you realize that these offers are only for
those with the highest credit ratings, there may only be one car at that
price, or you have to put down a larger than normal down payment.
*What
to do? Read the fine print first and foremost! Then call the dealer to
find out if the offer applies to only one particular car in stock. Also,
find out what the terms and conditions of the loan are and exactly who
the offer applies to.
Getting a loan for the purchase of an auto loan is not the same as getting an auto title loan
for fast cash. Auto title loan lenders don't run your credit because
the loan is based on the value and equity of your car or truck. Payments
are set up based on your pay cycle and repayment terms are usually
listed on the lenders website. The rates are high but any good auto
title loan lender should tell you upfront what you will be paying for
your loan.
